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Investigators from Rutgers University Business School Report New Data on Corporate Finance (What drives corporate minority acquisitions around the...

July 5, 2014



Investigators from Rutgers University Business School Report New Data on Corporate Finance (What drives corporate minority acquisitions around the world? The case for financial constraints)

By a News Reporter-Staff News Editor at Investment Weekly News -- A new study on Corporate Finance is now available. According to news reporting from Newark, New Jersey, by VerticalNews editors, the research stated, "In this paper, I examine minority block acquisitions from 1990 to 2009, as well as possible theories for the presence of equity stake purchases. I find that target firms are financially constrained."

The news correspondents obtained a quote from the research from Rutgers University Business School, "Acquisitions significantly increase their stock prices at announcement, along with their investment expenditures afterwards. In the two years following the acquisition, 27% (9%) issue new equity (debt) and raise 27% (24%) of their market capitalization. These findings support the theory that equity stakes certify the investment opportunities of target firms."

According to the news reporters, the research concluded: "I also find some support for the contracting motive, mostly in countries with good investor protection and a well-performing banking sector."

For more information on this research see: What drives corporate minority acquisitions around the world? The case for financial constraints. Journal of Corporate Finance, 2014;26():78-95. Journal of Corporate Finance can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Corporate Finance - www.elsevier.com/wps/product/cws_home/524467)

Our news journalists report that additional information may be obtained by contacting R.C. Liao, Rutgers Business Sch, Dept. of Finance & Econ, Newark, NJ 07102, United States.

Keywords for this news article include: Newark, New Jersey, United States, Corporate Finance, North and Central America

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Investment Weekly News


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